From the shapes panel select the shape as shown in the picture.

Unlock the “Size” and change the W – 2.5” and H- 1” then lock.

Draw a rectangle unlock the “Size” and change the W – 2.5” and H- 3.5” then lock.

Align both shapes horizontally then overlap them slightly.  From the combine menu select “Unite” Note:  If you did not overlap the shapes enough they will not combine. 

Next create the hole for the tag.  Draw a circle 0.3" and align to the center of the tag.  Select both the tag and the circle and from the “Combine” menu select “Subtract at overlap”  This will make this a single object. 

The tag part is complete.

Select the “text” tool and type your text in the box.  Select the font you want, I would suggest one that welds together, then select “Weld” to combine the letters.  In this case the Letter P is not attached but the “oppy” is and that will make it easier to align onto the Tag.

Place the text into the tag and rotate it 90 degrees, size and center it to the tag.

Change the layer color for the tag to RED and the one for the text to BLUE.  You do this by right clicking on the vector and selecting a color.

The Cherry wood is secured to the honeycomb and the RED vector file placed on top.  In the "Object Setting" panel make sure the RED is selected as "Output". 

Click on the BLUE layer and make it "Ignore".  Switch these settings and material for the letter part of the file.

Paint the letters with White acrylic paint.  Set aside and let dry.

Adhere the letters to the tag with wood glue or adhesive of your choice.

Embellish the tag with twine, ribbon and a wooden bead.

Hang the finished tag to a stocking, gift bag, or hang on your tree.

Enjoy!